A working paper exploring the idea that information equilibrium is a general principle for understanding economics. [Here] is an overview.

Friday, September 5, 2014

What would happen if the Fed unwound the QE?

What would have happened if the Fed unwound its quantitative easing program at the beginning of 2014?

Not much.

Well, the stock market would probably panic, overreact and fall a few hundred or thousand points. Republicans would probably call for Obama's impeachment (even though many of them believe that QE is hurting the economy).